Subordination Agreement 2015-0175950RECORDING REQUESTED BY
STEWART TITLE OF CALIFORNIA
Recording Requamed-by
And When Recorded Mail to: 11�
City of Poway
City Clerk's Office
13325 Civic Center Drive
Poway, CA 92064
SUBORDINATION AGREEMENT
DOC# 2015- 0175950
Apr 14, 2015 08:00 AM
OFFICIAL RECORDS
Ernest J. Dronenbur ®,Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $0.00
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
THIS AGREEMENT (the "Agreement "), is made as of 4-4.2&6 , by and among the City
Of Poway, a municipal corporation, hereinafter referred to as "City"; Lunn V. Quach, an
unmarried man, hereinafter referred to as "Borrower" and Mission Federal Credit Union,
hereinafter described as the "Lender ":
WITNESSETH
WHEREAS, in order to provide funds to the Borrower in connection with the purchase of
a home located at 12945 Choctaw Way, Poway, California, which property is legally described
in Exhibit A attached hereto (the "Property"), the City has made a loan to Borrower in the
original principal amount of $58,856 (the "Subordinate Begin Loan "), evidenced by a
Promissory Note in favor of the City dated December 23, 2009 (the "Begin Note ") and secured
by a Deed of Trust and Security Agreement in favor of the City (the "Subordinate Begin Deed
of Trust "), recorded against the Property in the Official Records of San Diego County on
December 23, 2009, as Instrument No. 2009 - 0708497. The Subordinate Deed of Trust, together
with any and all amendments and modifications thereto recorded in the Official Records of San
Diego County in connection with the Subordinate Loan, are hereinafter referred to as the
"Subordinate Begin Loan Encumbrances." The Subordinate Encumbrances, the Note, and all
other documents evidencing or securing the Subordinate Begin Loan are collectively referred to
as the "Subordinate Begin Loan Documents." ^ II
WHEREAS, pursuant to a Loan Agreement dated as of 4.6- &1SMission Federal
Credit Union (the "Senior Lender ") is making a loan to Borrower in the amount of $271,000
(the "Senior Loan "). The Senior Loan is secured by that certain Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Fixture Filing dated as of N 6, which
will be recorded in the Official Records of San Diego County concurrently herewith (the "Senior
Loan Deed of Trust "). The Senior Loan Deed of Trust and any other instruments or documents
which are recorded in connection with the Senior Loan shall be referred to collectively as the
Quach BEGIN Subordination
"Senior Loan Encumbrances." The Senior Loan Encumbrances and any and all notes, loan
agreements, and other documents and instruments executed by Borrower in connection with the
Senior Loan shall be collectively referred to as the "Senior Loan Documents."
WHEREAS, it is 'a condition precedent to the Senior Lender providing the Senior Loan
that the Senior Encumbrances be unconditionally and at all times remain a lien or charge upon
the Property prior and superior to all the rights of the holder of the Subordinate Begin Loan
Encumbrances and that the City specifically and unconditionally acknowledge that the
Subordinate Begin Loan Encumbrances are and shall remain subordinate to the lien or charge of
the Senior Encumbrances.
WHEREAS, it is to the benefit of all the parties herein that the Senior Loan be made to
the Borrower; and the City is willing that the Senior Encumbrances shall, when recorded,
constitute a lien or charge upon the Property which is unconditionally prior and superior to the
lien or charge of the Subordinate Begin Loan Encumbrances.
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties
hereto and other valuable consideration, the receipt and sufficiency of which consideration is
hereby acknowledged, and in order to induce the Senior Lender to provide the Senior Loan, it is
hereby declared, understood and agreed as follows:
(1) That Senior Encumbrances, and any renewals, modifications or extensions thereof, shall
unconditionally be and remain at all times a lien or charge on the Property described,
prior and superior to the lien or charge of the Subordinate Begin Loan Encumbrances;
(2) That the Senior Lender would not provide the Senior Loan without this Agreement; and,
(3) That with regard to the priority of the Subordinate Begin Loan Encumbrances, this
Agreement shall be the sole and only agreement with regard to the subordination of the
lien or charge of the Subordinate Begin Loan Encumbrances to the lien or charge of the
Senior Encumbrances and shall supersede and cancel any prior agreements as to such
subordination including, but not limited to, those provisions, if any, contained in the
Subordinate Begin Deed of Trust, which provide for the subordination of the lien or
charge thereof to another deed or deeds of trust, another mortgage or mortgages, or any
other property use restrictions or covenants.
THE CITY hereby declares, agrees and acknowledges that:
(a) It consents to all provisions of the Senior Documents and of any and all other agreements,
including but not limited to any escrow instructions or agreements, relating to the
disbursement of the proceeds of Senior Loan that have been submitted to City for its
review (collectively, "Disbursement Provisions ");
(b) The Senior Lender, in approving any disbursements pursuant to any such Disbursement
Provisions, is under no obligation or duty to, nor has the Senior Lender represented that it
will, see to the application of such proceeds by the person or persons to whom the
proceeds are disbursed and any application or use of such proceeds for purposes other
Quach BEGIN Subordination 2
than those provided for in the Senior Documents shall not defeat the subordination herein
made in whole or in part; and,
(c) It intentionally and unconditionally subordinates the lien or charge of the Subordinate
Begin Loan Encumbrances in favor of the lien or charge upon the Property of the Senior
Encumbrances and understands that in reliance upon, and in consideration of, this
subordination, specific loans and advances are being and will be made and, as part and
parcel thereof, specific monetary and other obligations are being entered into which
would not be made or entered into but for said reliance upon this subordination.
(d) Upon any event of foreclosure of the Subordinate Begin Deed of Trust, whether by power
of sale or by court action, or upon a transfer of the Property in lieu of foreclosure, such
foreclosure shall not be deemed an event of default under any of the Senior Loan
Documents provided that the City or any assignee of its rights or transferee of the
Property agrees to assume all of Borrower's obligations under the Senior Loan
Documents within ninety (90) days of such foreclosure and thereafter complies with all
terms of the Senior Loan Documents.
(e) Notwithstanding anything to the contrary contained in the Subordinate Begin Loan
Documents, prior to the City declaring any default or taking any remedy permitted
against the Borrower under the Subordinate Begin Loan Documents or applicable law
based upon an alleged default under the Subordinate Begin Loan Documents, the City
shall give notice to the Senior Lender of such alleged default, and the Senior Lender shall
have a period of not less than ninety (90) days to cure such alleged default.
Notwithstanding the foregoing, other than the appointment of a receiver to collect monies
owing from the Borrower, the City may take any reasonable action it deems necessary or
appropriate in good faith to protect its security. Notices of any default by the Borrower
under the Subordinate Begin Loan Documents shall be given to the Senior Lender at the
following address:
Mission Federal Credit Union
5785 Oberlin Drive
San Diego, CA 92121 -3749
(f) Concurrently with a notice from the Senior Lender to the Borrower that a default or
breach exists under the terms of any of the Senior Documents, Senior Lender shall send a
copy of such notice to the City and the City shall have thirty (30) days to cure such
default. The Senior Lender will not exercise any of its remedies against Borrower or the
Property during any applicable cure period set forth herein beginning after the date such
notice is given to Senior Lender, except that Senior Lender may take any reasonable
action it deems necessary or appropriate in good faith to protect its security.
Notwithstanding anything to the contrary in this Agreement, any indebtedness and any
other amounts secured by the Senior Encumbrances may be accelerated and become
immediately due and payable in accordance with the terms of the Senior Lender Deed of
Trust or any other Senior Documents and a notice of default may be recorded in the
applicable governmental office immediately upon the occurrence of a default and
expiration of any applicable notice and cure periods set forth in the Senior Documents,
Quach BEGIN Subordination 3
provided, however, that if the underlying default giving rise to such acceleration is a
monetary default, the City and Borrower shall be deemed to have cured the default by
tendering payment of all amounts then due as if no acceleration of any indebtedness had
occurred. Notices of any default by the Borrower under the Senior Loan Documents shall
be given to the City at the following address:
City of Poway
13325 Civic Center Drive
Poway, California 92064
Attention: Begin Program
(g) After a default under the Senior Documents, but prior to a foreclosure sale or deed in lieu
assignment of the Property, the City shall have the right to purchase the Property from the
Borrower and pay all amounts due and owing under the Senior Documents.
(h) The provisions of the foregoing paragraph are intended to supplement, and not to limit,
waive, modify or replace, those provisions of law pertaining to notice and cure rights of
Subordinate lenders including, without limitation, those set forth in California Civil Code
§§ 2924b and 2924c.
Quach BEGIN Subordination 4
IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
CITY OF POWAY
By: Lu��
Daniel Singer, City Man4jer
SIGNATURES MUST BE NOTARIZED
[Signatures continue on following page]
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
notary public or other oW Mting this certifipte verifies onlof the individual who signed t to which this certificate is not the truthfulness. accuracy
that document.
) SS.
On aor, ( 9 , 2015, before me Colo( S. Lain W&latf (personally appeared
b Ln 4 e 1 Si Aa 2P who proved to me on the basis of
satisfactory evidence M be the person(s) whose namepo is /pre subscribed to the within
instrument and acknowledged to me that he /she/;hey executed the same in his/her /;heir
authorized capacityoasj, and that by his/bar /their signature(syon the instrument the person(.%yor
the entity upon behalf of which the personkoacted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
'q-"C M'4
Notary
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CAROL S. LEGG
Commission * 1934186
Z .-: Notary Public • California i
T San Diego County
M Comm. Expires Apr 28, 2015
THE BORROWER:
By
uan V. Quach
SIGNATURES MUST BE NOTARIZED
[Signatures continue on following page]
STATE
COUNTY OASAN DIEGO
5M
) ss.
_ 2015, before me, , personally appeared
, who proved to me on the basis of
to be the person(s) whose name(s) is/are subscribed to the within
instrument and acicn wledged to rae that he/she/they executed the same in his/her /their
authorized capacity(i , and that by his/her /their signature(s) on the instrument the person(s) or
the entity upon behalf which the person(s) acted, executed the instrument.
I certify under PENALT OF PERJURY under the laws of the State of California that the
foregoing paragraph is trueXnd correct.
WITNESS my hand and office I seal.
Notary
Quach SHOP Subordination
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of
the individual who signed the document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document
State of California
County of JA.,/ LG
On ArR I, 11- 2D /, before me, Donald J. Foeller, Notary Public
r
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is /are subscribed to the within instrument and acknowledged to me that
he /she /they executed the same in his /her /their authorized capacity(ies), and that by
his /her /their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
FDEIIER
Signature WV, ' yi 2058
IC
Signatura'o/ wary Public Donald J. Foeller YI r p NOTARY AUBLIC- CALIFOABM
•� touxtr or SAS Dlceo
F' Mr caul. ErP. Us' 18, 2018
Commissio -2058428
Commission Expiation Date: March 18, 2018
tltholi,gh th< ^,:;li�rmadm; In t61.vsecbnn is not require b� faw, it could prevent fraudutrrnt removi�l and reaCrnchment
to un unuuthurired dacnlmentand muv; iro, r 1u71rt rl person: rrrhin,l .m Cho utuacGerl document.
This Acknowledgment is attached to a document titled:
THE LENDER:
MISSION FEDERAL CREDIT UNION
1 4411
By:
Dia a Clegg, RE Origi ti ns Operations Manager
SIGNATURES MUST BE NOTARIZED
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
On
satisfactory evidence to be
instrument and acknowledl
authorized capacity(ies), ai
the entity upon behalf ofvy
I certify under PENAL'
foregoing paragraph is
WITNESS my hand
Notary
Quach SHOP Subordination
) ss.
15/before me, , personally appeared
who proved to me on the basis of
persons) whose name(s) is/are subscribed to the within
i to me that he /she/they executed the same in his/her /their
that by his/her /their signature(s) on the instrument the person(s) or
-h the person(s) acted, executed the instrument.
OF PERJURY under the laws of the State of California that the
and correct.
official seal.
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
COUNTY OF A notary public or other officer completing this certificate verifies only
S the identity of the individual who signed the document, to which this
certificate is attached, and not the truthfulness, accuracy, or validity of
that document.
On /� /OZ.Q�� before me,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he /she /they executed the same in his/her /their authorized capacity(ies), and that by his/her /their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of Califo tWlrfrtrt�tiet(i„par�g correct
JANET NGUYEN
Commission i 1938354
SS my h d and o tc' I s al. Notary Public - Calliornia
rn A A A
San Diego County
M Comm. E ree Ma 24, 2015 r
gn a (Seal)
OPTIONAL
Though the data below is not required bylaw, it may prove valuable to persons relying on the document and could prevent fraudulent removal
and reattachment of this form to another document.
Description Of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other than Named Above:
Capacity(ies) Claimed By Signer(s)
Signer's Name:
>❑ Individual
❑ Corporate Officer — Titles(s):
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fad
,❑ Trustee T
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
Number of Pages:
Signer's Name:
❑ Individual
❑ Corporate Officer — Titles(s):
❑
Partner— ❑ Limited ❑
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
General
FORMSIBranch -Dept FormsWotarylNotary Cerliftcalas Cal All- Purpose Achnow MFCU 1212014
TRUE COPY CERTIFICATION
(Government Code 27361.7)
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Place of Execution
I certify under penalty of perjury that this material is a true copy of the original
material contained in this document.
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Signature of Declarant
Type or Print Name
EXHIBIT A
That certain property situated in the State of California, County of San Diego, City of Poway,
described as follows:
LOT 9 OF CITY OF POWAY TRACT NO. 06 -06 THE MEADOWS, IN THE CITY OF
POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP
THEREOF NO. 15743, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN
DIEGO COUNTY MARCH 5, 2009.
END OF LEGAL DESCRIPTION.
Quach SHOP Subordination 8